Conventional business wisdom will tell us that we should tell our shareholders what they want to hear so that the price of company stock will rise. This displaces the value that corporations will aim for toward the shareholder and not necessarily toward the customer. This is where Agile methodologies conflict as the goals of a conventional vs. agile mindset are not the same.
Below we will outline how conventional corporate mindset thinking conflicts with that of an agile mindset:
1- Focus on customers over shareholders
As a company you would likely be trying to appeal to both the shareholders and customers, however it’s usually shareholders that will come first and customers second. Based on agile principles and agile mindsets, the priority undeniably reverts to customers first! Everything in the agile value mindset reflects a goal toward delighting the customer and the accepted agile methodologies and processes show much evidence to conclude this is always the case.
2- Perceived Loss of control
The thought that there could be teams that are self-organized and self-managed leaves a sense of control loss by management at any level. Management may argue that if the teams are self-managing, then what is the use for management in the first place. Unfortunately this is a false perception, since management would likely still be needed for areas of business operations that are not covered by the day-to-day of agile processes.
3- Perceived loss of authoritative rank and power
Most conventional businesses will follow the militaristic approach as the known command-and-control approach to business structure and organization. Companies with a highly vertical (hierarchical) structure being at one extreme and the more flat (horizontal) type of organization at the other end. Those with a heavy emphasis on a vertical structure tend to harbor many of the anti-patterns of an agile approach. Be it either from lack of trust or lack of willingness to let go of authoritative power, many companies that have a top-heavy structure will not be easily capable of converting or adopting agile.
4- Focus on delivering immediate customer value over immediate revenue
As many have noticed the periodic reporting of large businesses, especially those whose stocks are on the market exchange, the revenues that were forecasted must hold up in the later quarters or else face the consequences of lost share prices and market share overall. This places emphasis on how soon work can be done and made billable rather than concentrating on the actual scope and process of work to be done. The best interest of the customer is left behind as resources are stuffed into the work processes, rather than allowing agile methodologies to take their course.
5- Too much learning and too much change
Most who have reached a respectable level within their company whether it be in management or non-management (technical) levels, may tend to sit on their laurels all too often. Although we seem to hope that society is a meritocracy, let’s face it, some people just get to the higher positions based on years of experience rather than actual willingness to continue learning and changing. To this point, there are some who live up to their titles, but others who don’t and wouldn’t care to collaborate with their fellow colleagues either because they have underdeveloped people skills, lack of extensive knowledge, or because it’s seen as too much work to learn and share.
6- Customer value is cumulative while overall benefits only come if done properly in the long run
If there is anything we can’t promise is what will happen in the future. It is highly unlikely that an executive management team will wait to see if there will be continued commitment and support from their existing customers. Since much of what builds up customer satisfaction retention accumulates over time, most companies do not factor that in and will take the shortest path to generating revenue. Building quick untested solutions for the sake of having something billable does not look after the best interest of the client. This extends further to the disappointment of employees who are being told what to do, without buy-in. Some companies would rather sacrifice growth of their existing team synergies to result in high turnovers from unmotivated employees, rather than keep them on-board. This is why at the first sign of lost profits, most companies will take the immediate route of terminating their employees. The reason? It’s the quickest and easiest way to lower costs. However in the long-term it proves detrimental, and usually leads to further “voluntary” fallout where employees lose sense of purpose from the previous setback of layoffs. This affects customer relationships as the level of expertise and direct customer engagement from employees diminish.
7- Increased level of transparency perceived as very risky
Most companies do not share at many levels for fear that the truth may reveal too much for many to be comfortable with. High levels of transparency bring about a sense of fear that the information provided can be way too sensitive or used against the company. Although transparency may reveal positive and negative aspects of a company and its operations, most companies tend to err on the side of non-transparency to avoid the risk at all costs. This approach of course lowers the level of trust and therefore the level of engagement from customers as they find out from latent communications throughout the project life-cycle.
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